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Facts
The assessee appealed against the CIT(A)'s order for A.Y. 2012-13, which confirmed additions of Rs. 66,19,724/- and Rs. 15,80,148/- under Section 69A for unexplained term deposits and interest. The assessee contended that the assessment order was passed ex-parte without providing a reasonable opportunity of being heard.
Held
The Tribunal observed that the assessment was completed without affording the assessee an adequate opportunity to present submissions. Consequently, the case was remanded back to the Assessing Officer for a fresh assessment (de novo), requiring the AO to provide due and adequate opportunity of hearing to the assessee.
Key Issues
1. Whether the assessment and appellate orders were validly passed without affording the assessee a reasonable opportunity of being heard. 2. Whether the additions made under Section 69A for unexplained term deposits and interest thereon were justified.
Sections Cited
250, 148, 147, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY
Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 29.04.2025 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi pertaining to A.Y. 2012-13.
Grounds of appeal are as under:
1. 1. That on the facts, circumstances and legal position of the case, the Worthy CIT(A), NFAC in Appeal No. CIT (A), Chandigarh- 2/10066/2020-21 has erred in passing
789-Chd-2025 Kuldip Singh, Chandigarh 2 order dtd. 04.07.2024 in contravention of provisions of S. 250 of the Income Tax Act, 1961 (hereinafter referred to as "Act").
2. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in upholding the action of Ld. AO of initiating, continuing and then concluding the impugned assessment u/s 148 r.w.s. 147 and hence the impugned assessment order deserves to be quashed.
3. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition of Rs. 66,19,724/- by treating the term deposits in the bank as unexplained money u/s 69A even when such deposits were out of genuine and explained sources.
4. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition of Rs. 15,80,148/- u/s 69A on account of interest earned from the term deposits as unexplained money.
5. That on facts, circumstances and legal position of the case, the order passed by Ld. AO and then by Worthy CIT(A) deserves to be quashed since the same have been passed without affording reasonable opportunity of being heard to the appellant.
6. That the appellant craves leave for any addition, deletion, or amendment in the grounds of appeal on or before the disposal of the same.
789-Chd-2025 Kuldip Singh, Chandigarh 3
At the very outset, ld. Counsel for the Assessee brought it to the notice of the Bench that the order passed by the Assessing Officer is an ex-parte order without giving Assessee an opportunity to file submissions and subsequently the additions made without taking note of submissions made by the Assessee was confirmed by the Ld. CIT(A). The ld. Counsel for the Assessee requested that the matter may be remanded back to the Assessing Officer for making afresh assessment taking into consideration the written submissions filed by the Assessee.
Per contra, the ld. DR relied on the orders of the authorities below.
We have considered the findings given by the authorities below and the written submissions as well as arguments of the ld. DR. We are of this considered view that in the fitness of things, the matter should be remanded back to the file of the Assessing Officer for making assessment de novo after giving due and adequate opportunity as required under the law.
789-Chd-2025 Kuldip Singh, Chandigarh 4
Accordingly, the case is remanded back to the file of the AO for adjudication afresh on merit, by considering the submissions, documentary evidence produced by the Assessee and the relevant material available on record. Needless to say, that the Assessing Officer shall afford due, reasonable and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the proceedings before the Assessing Officer. All pleas available under the law shall remain so available to the assessee. Ordered accordingly.
In the result, Assessee’s appeal is allowed for Statistical Purposes.
Order pronounced on 27.10.2025.